Astur Gold Files Preliminary Economic Assessment for Salave Gold Project on SEDAR
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/31/11 -- Astur Gold Corp. (TSX VENTURE: AST)(FRANKFURT: CDC) ('Astur Gold' or the 'Company') is pleased to announce that it has filed the Preliminary Economic Assessment (the 'PEA') by Golder Associates on its 100% owned Salave Gold Project in Asturias, Spain on SEDAR. It is now available on SEDAR at www.sedar.com as well as on the Company's website at www.asturgold.com. The summary results of the PEA can be found in Astur Gold Press Release dated February 16, 2011.
SUMMARY OF PEA RESULTS
The PEA examines three different mining scenarios: an open pit only scenario ('OP'), an underground only scenario ('UG'), and a combined open pit and underground scenario ('OP UG'). Scenarios 1 & 2 consider a large OP with minor UG operation at the end of life of mine ('LOM'), scenarios 3 & 4 consider an UG operation only and scenarios 5 & 6 consider and UG operation concurrently with a small OP. In addition, the Study combines the mining scenarios with two processing options: a Bio Oxidation scenario ('BOX') and a Pressure Oxidation scenario ('POX'). Below is a summary table of all 6 scenarios examined in the Study:
TABLE 1: SUMMARY OF OUTCOMES FOR DIFFERENT SCENARIOS
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NET PAY NPV
SCENARIO MINING OXIDATION LOM INCOME BACK (5%) IRR
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(years) (US$M) (years) (US$M) (%)
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1 Large OP POX 18 1195 3.1 576 34%
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2 Large OP BOX 18 1115 3.0 548 36%
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3 UG POX 10 714 2.2 391 46%
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4 UG BOX 10 663 2.0 374 53%
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5 COMBINED POX 14 902 2.1 486 47%
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6 COMBINED BOX 14 844 2.0 464 54%
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CORRECTIONS FOR FEBRUARY 16, 2011 NEWS RELEASE
The February 16, 2011 Press Release contained a minor error related to the average annual production for the scenarios 5 & 6 that stated a figure 106,500 oz where it should have stated a higher figure of 110,571 oz. All the annual productions reported in the February 16 press release refer to gold mined. The production numbers including the overall plant recovery are in the Table 2.
TABLE 2: PRODUCTION FOR SALAVE UNDER DIFFERENT SCENARIOS
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Annual average Annual average Total Au
Au mined Au plant recovered Production over
production production entire Life Of Mine
(thousand oz) (thousand oz) (thousand oz)
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Large OP POX 108 103 1,848
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Large OP BOX 108 98 1,771
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UG POX 133 127 1,273
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UG BOX 133 122 1,221
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Combined POX 111 106 1,479
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Combined BOX 111 101 1,418
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Additionally, TABLE 5: INPUT PARAMETERS FOR PRELIMINARY ECONOMIC ASSESSMENT of the February, 2011 Press Release contained a minor spelling mistake resulting in two lines that said 'POX CIL Recovery' with different numbers. The second 'POX CIL Recovery' corresponding to the number 94.9% is supposed to be 'BOX CIL Recovery'.
Qualified Person
The Study, including a new mineral resource estimate for a proposed underground operation at the Salave Gold project has been prepared by Golder Associates Global Iberica S.L.U. (Golder), Under the direction if its Managing Director Dr. Arturo Gutierrez del Olmo, European Engineer, and under the direct supervision of Sergio Tenorio, European Geologist, Qualified Person (QP) under National Instrument 43-101. Utilizing the underground mining parameters and updated economic factors defined in the Study, Golder has revised and reported an underground resource based on the report 'Technical Report on the Salave Gold Deposit, Spain', dated February 25, 2010 and authored by Hrayr Agnerian, of Scott Wilson RPA Inc. of Toronto, Canada (reference Astur Gold Press Release April 21, 2010). For the purpose of the re-evaluation, Golder has considered the geostatistics and block model generated for the preparation of the aforementioned Technical Report. Golder relies on, but does not guarantee, the validity of the block model. The Q.P., Sergio Tenorio has reviewed and approved the contents of this release.
ABOUT GOLDER ASSOCIATES
Golder Associates is an employee-owned company with international expertise in ground engineering, earth and environmental services. Its areas of expertise include oil and gas, mining, manufacturing, power, and transportation. Golder Associates has over 7,000 employees, operating from 160 offices located throughout Europe, Africa, Asia, Australasia, North America, and South America.
ABOUT ASTUR GOLD
The Company is developing its 100% owned Salave Gold Project in northern Spain. Salave is one of the largest undeveloped gold deposits in Western Europe. The property has a NI 43-101 compliant mineral resource estimate containing 1,683,000 oz of gold grading 2.92 g/t Au in the Measured & Indicated category (2,155,000 tonnes grading 3.88 g/t Au Measured and 15,790,000 tonnes grading 2.79 g/t Au Indicated) with an additional 338,000 oz of gold in the Inferred category (3,770,000 tonnes grading 2.8 g/t Au).
There is excellent exploration potential at Salave, with four of the principal high grade zones of mineralization open at depth. Additional exploration areas to the west have also yet to be tested. Previous metallurgical tests indicate gold recoveries in the order of 90% are possible. The project is currently affected by land usage regulations that would affect OP but not UG mining. The region boasts excellent infrastructure and a history of mining that will help support future mine development. Astur Gold is advancing Salave towards production and cultivating an enduring partnership with the people of Asturias in developing economic prosperity for the region.
Salave is subject to NI 43-101 report, 'Technical Report on Salave Gold Deposit, Spain', dated February 25, 2010 as well as 'Preliminary Economic Assessment on the Salave Gold Project, Asturias Region, Spain' dated February 12, 2011. Both documents are available on SEDAR and the Company's website.
ON BEHALF OF THE BOARD
Cary Pinkowski, Chief Executive Officer and Director
Forward Looking and other Cautionary Information
This release includes certain statements that may be deemed 'forward-looking statements'. All statements in this release, other than statements of historical facts, that address estimated resource quantities, grades and contained metals, possible future mining, exploration and development activities, are forward-looking statements. In particular, Preliminary Economic Assessments are preliminary in nature, including Inferred Mineral Resources that are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as Mineral Reserves, and there is no certainty that the findings of the Preliminary Assessment will be realized. Although the Company believes the expectations expressed in the Preliminary Economic Assessment and other forward-looking statements are based on reasonable assumptions, such statements should not be in any way construed as guarantees of future performance and actual results or developments may differ materially from those in the forward looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices for metals, the conclusions of detailed feasibility and technical analyses, lower than expected grades and quantities of resources, mining rates and recovery rates and the lack of availability of necessary capital, which may not be available to the Company on terms acceptable to it or at all. The Company is subject to the specific risks inherent in the mining business as well as general economic and business conditions. For more information on the Company, Investors should review the Company's annual Form 20-F filing with the United States Securities Commission and its home jurisdiction filings that are available at www.sedar.com.
Information Concerning Estimates of Measured, Indicated and Inferred Resources This news release also uses the terms 'indicated resources' and 'inferred resources'. Astur Gold Corp. advises investors that although these terms are recognized and required by Canadian regulations (under National Instrument 43-101 Standards of Disclosure for Mineral Projects), the U.S. Securities and Exchange Commission does not recognize them. Investors are cautioned not to assume that any part or all of the mineral deposits in these categories will ever be converted into reserves. In addition, 'inferred resources' have a great amount of uncertainty as to their existence, and economic and legal feasibility. It cannot be assumed that all or any part of an Inferred Mineral Resource will ever be upgraded to a higher category. Under Canadian rules, estimates of Inferred Mineral Resources may not form the basis of feasibility or pre-feasibility studies, or economic studies except for Preliminary Assessment as defined under 43-101. Investors are cautioned not to assume that part or all of an inferred resource exists, or is economically or legally mineable.
Mineral resources that are not mineral reserves do not have demonstrated economic viability.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Astur Gold Corporation
Vadim Dubchak
604-694-1600
604-694-1663 (FAX)
info@asturgold.com
www.asturgold.com